Amarin attracts put buyers as shares see continued weakness
Amarin attracts put buyers as shares see continued weakness. The stock down $1.17 to $14.21 and has now dropped 38% since reaching multi-year highs on 11/5. In option action Wednesday, Dec 16 puts trade for $2.15 to $2.51 per contract. 5.3K changed hands against 3.1K open interest. 4.3K Nov 15 puts also changed hands. Jan 21 calls, Nov 14 puts, and Nov 17 puts are next most active. A total of 11K calls and 21K puts traded and 30-day implied volatility up 10.5% to 123. Weakness in shares today comes despite a Citi upgrade to Buy. Still, even after the sharp drop over the past two weeks, the stock is 380% above levels seen on 9/23 before an exponential move in the wake of results from a Vascepa cardiovascular outcomes trial. High option volume and IV suggests players expect the volatility to continue in the short-term.